The Israeli legal framework for foreign real estate acquisition is, by international standards, remarkably straightforward. There is no nationality restriction.
The legal architecture
Israel operates a centralised land registry (the Tabu). The acquisition is documented in a contract signed before two lawyers and registered in the Tabu following payment of purchase tax.
A typical timeline from signed offer to registered ownership is six to twelve weeks.
Purchase tax (Mas Rechisha)
For non-resident buyers, the rates are progressive:
There is no first-home exemption for non-residents.
Capital gains and rental income
Capital gains tax on resale applies at 25%. Rental income is taxable in Israel — non-residents typically use the simplified 10% withholding regime.
Currency and financing
The Israeli shekel is freely convertible. Mortgage financing is available to non-residents up to ~50% LTV.
The role of the advisor and the lawyer
The lawyer is the central professional in the transaction. The real estate advisor is a separate role focused on property identification and negotiation.
Structural questions to ask
Ownership structure. Buy in personal name, through an Israeli company, through a trust, or through a foreign entity? Each has different tax, inheritance, and privacy implications.
Future aliyah. Even a vague future possibility materially changes the optimal acquisition structure.
For a confidential consultation, please contact our team. To review current inventory, see our Tel Aviv and Jerusalem portfolios, or our off-market opportunities.
FAQ
Can foreigners buy property in Israel without restrictions? Yes.
What is the total transaction cost? Approximately 8–11% beyond the purchase price.
Can I get a mortgage as a non-resident? Yes, up to ~50% LTV.
